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Aircraft Engines & Engine Parts: capital spending and supply chain

SIC 3724 · 5 companies with filed cash-flow statements

Capital spending, 12 months$4.1B
Operating cash flow$15.9B
Capex / cash flow26%
Capex / revenue2.9%
Top 3 share98%

Analysis

5 companies in Aircraft Engines & Engine Parts (SIC 3724) spent $4.1B on capital projects over their latest twelve months, 26% of the $15.9B their operations generated; the three largest spenders — RTX, HON, SARO — account for 98%.

Capital spending is 2.9% of the industry's $141.3B of annual revenue.

By the industry's asset mix most of it goes to equipment (50%); about $589M is imported.

The largest supplier of that spending is manufacturing structures ($786M).

Its largest supplying industries, by the input-output tables: aircraft engine and engine parts manufacturing ($32.0B), imports ($15.0B), management of companies and enterprises ($4.7B).

Charts

Aircraft Engines & Engine Parts: capital spending by company, latest twelve monthsAircraft Engines & Engine Parts: capital spending by company, latest twelve monthsRTX$2.9BHON$980MSARO$83.0MHEI$81.0MSIF$708K
Filed cash-flow statements (SEC XBRL).
Aircraft Engines & Engine Parts: what the capital spending buys (US part)Aircraft Engines & Engine Parts: what the capital spending buys (US part)Structures$896MEquipment$1.6BSoftware$522MOther$210M
Capital spending × the industry’s asset mix (BEA fixed assets): grade C, an industry average applied to filed figures.
Aircraft Engines & Engine Parts: the industries that build and sell what it buysAircraft Engines & Engine Parts: the industries that build and sell what it buysManufacturing structures$786MAircraft manufacturing$517MSoftware publishers$274MAircraft engine and engine parts …$179MComputer systems design services$130MMaterial handling equipment manuf…$114MAir conditioning, refrigeration, …$106MConstruction machinery manufactur…$106MCustom computer programming servi…$102MMachine tool manufacturing$80.5M
BEA fixed assets: investment by asset type → supplying industry. Estimates (grade C).
Aircraft Engines & Engine Parts: its first-tier supplying industriesAircraft Engines & Engine Parts: its first-tier supplying industriesAircraft engine and engine parts …$32.0BImports$15.0BManagement of companies and enter…$4.7BEmployment services$3.7BOther aircraft parts and auxiliar…$3.0BAll other forging, stamping, and …$2.1BMachinery, equipment, and supplies$1.5BElectric power generation, transm…$1.4BOther support services$1.3BComputer systems design services$1.3B
Purchased inputs × the industry’s input mix (BEA Use table), US part: grade C.
Aircraft Engines & Engine Parts: where the industry's cash came from (+) and went (−)Aircraft Engines & Engine Parts: where the industry's cash came from (+) and went (−)Net debt repaid−$22.2BOther financing (in)$16.5BOperating cash flow$15.9BCash drawn from the balance s…$7.3BDividends−$6.4BCapital spending−$4.1BCash added to the balance she…−$3.3BAcquisitions−$2.8BSales of assets & businesses$2.2BOther investing (out)−$1.5BBuybacks−$1.1BOther financing (out)−$960MShares issued$350MNet borrowing$235M
The companies’ cash-flow statements, latest four quarters or fiscal year: every figure filed (grade A).

Capital spending by company

CompanyCapital spendingOperating cash flowCapex / OCFPeriod
RTX RTX$2.9B$12.4B24%TTM to Q3 2026
HON Honeywell International$980M$1.9B50%TTM to Q3 2026
SARO StandardAero$83.0M$405M21%TTM to Q3 2026
HEI Heico$81.0M$1.1B7%TTM to Q3 FY26
SIF Sifco Industries$708K$4.1M17%TTM to Q3 FY26

Customers and suppliers named in annual reports

SupplierCustomerShare of supplier revenueEvidenceSource
RTXU.S. government8%Stated in 10-K (customer table)filing
HWMRTX11%Stated in 10-K (sentence)filing
DCORTX61%Stated in 10-K (sentence)filing
MRCYRTX15%Stated in 10-K (sentence)filing
CVURTX38%Stated in 10-K (sentence)filing
AIRIRTX36%Stated in 10-K (customer table)filing
SODIRTX27%Stated in 10-K (sentence)filing
GEHEI—Stated in 10-K (named, share not stated)filing
RTXDCO—Stated in 10-K (share of revenue from its products)filing
HONSMR—Stated in 10-K (named, share not stated)filing
HONAQUIK—Stated in 10-K (named, share not stated)filing
RTXusgov—

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Evidence grades: A filed figure · B computed from filed figures · C industry average (BEA input-output and fixed-asset tables) applied to filed figures. Estimates are not the companies’ own records. Not investment advice.